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Problem: Hilly Mountain Party Planners had a $35,000 balance in Accounts Receivable and a $2,300 credit balance in Allowance for Uncollectible Accounts. During October, the store made credit sales of $163,000. October collections on account were $142,000, and write-offs of uncollectible receivables totaled $3,200. The required allowance at year-end is calculated to be $4,500.
Requirements
Question 1: Journalize sales, collections, write-offs of uncollectibles, and uncollectible-account expense by the allowance method during October. Explanations are not required.
Question 2: Show the ending balances in Accounts Receivable, Allowance for Uncollectible Accounts, and Net Accounts Receivable at October 31. How much does the store expect to collect?
Question 3: Show how the store will report Accounts Receivable on its October 31 Balance Sheet.
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